SEOUL, SOUTH KOREA / RankWire.AI / – In July 2026, South Korea’s automotive export figures surged by 7.0% year-over-year, reaching a total of US$6.24 billion. This milestone set a new record for July and surpassed the previous peak of US$5.90 billion recorded in 2023. The Ministry of Trade, Industry and Resources announced increases across exports, manufacturing, and domestic sales. The number of vehicles produced grew by 11.3% to approximately 352,000 units, while domestic sales experienced a slight rise of 0.5%, totaling 139,000 units.
A significant portion of the export growth was driven by eco-friendly vehicles. Their international sales value increased by 25.5% compared to the previous year, reaching US$2.59 billion. Exports of electric and hydrogen vehicles rose by 31.9%, totaling US$940 million. Hybrid vehicles also saw a 22.2% increase, amounting to US$1.65 billion. Conversely, exports of traditional internal combustion engine vehicles declined by 3.1%, down to US$3.65 billion. Eco-friendly models made up roughly 41.5% of South Korea’s total automobile export value in July.
North America remained the top destination for Korean vehicle exports, with shipments increasing by 18.0% to US$3.25 billion. Exports to the European Union also saw a rise of 23.5%, reaching US$880 million. The Middle East received US$430 million worth of exports, which is a 12.7% increase from July 2025. This marked the end of seven consecutive months of year-on-year declines in the region. Meanwhile, exports to Asia fell by 27.1%, and shipments to Central and South America decreased by 7.4%.
Eco-friendly vehicles fuel export expansion
The rise in production for July also reflected adjustments in the industry’s summer operating schedule. Major automakers shifted their vacation periods from July last year to August this year, resulting in more working days within the month. As a result, output increased to about 352,000 vehicles, with factories operating longer than in July 2025. Hyundai Motor was among the key manufacturers involved in industry discussions regarding the sector’s monthly performance and production conditions.
Despite stable domestic demand, sales of lower-emission vehicles saw a sharp increase. South Korean consumers purchased approximately 84,000 eco-friendly vehicles in July, representing a 14.6% rise from the previous year. These models accounted for around 60% of all vehicles sold domestically. Battery electric vehicle sales climbed 47.5% to 36,000 units. Overall, domestic auto sales reached 139,000 vehicles, reflecting a modest 0.5% growth compared to July 2025.
Strong performances in North America and Europe
July’s figures reveal a clear divergence: robust demand for eco-friendly models contrasted with weaker exports of conventional vehicles. Hybrids contributed the most to green vehicle exports at US$1.65 billion, while electric and hydrogen models added another US$940 million. Combined, these categories pushed South Korea’s green vehicle exports above US$2.5 billion for the month. Despite this, traditional vehicles still dominated export values at US$3.65 billion, although they experienced a year-on-year decline.
Thus, South Korea’s auto sector experienced concurrent growth in exports, manufacturing output, and domestic sales in July. North America remained the leading market for overseas demand, while the European Union and Middle East regions posted double-digit growth. The increase in eco-friendly vehicle exports and sales was bolstered by higher shipment volumes of hybrids and electric models. The July data also highlighted significant regional disparities, with declines in Asia and Central and South America offsetting some of the gains achieved elsewhere.